Yokohama to expand hydraulic hose production at Ibaraki Plant and reorganizing hoses and coupling production in North America
Tokyo, Japan – The Yokohama Rubber Co., Ltd., announced that it will expand the production capacity of its Ibaraki Plant (Omitama City, Ibaraki Prefecture), where the Company manufactures high-pressure hydraulic hoses. The capacity addition will focus on installing a new line for spiral wire hoses used mainly in construction machinery and increase the production capacity of the Ibaraki Plant’s continuous production lines* by 1.5 times. Construction will begin this May, with the new line expected to start operating in September 2023. The total planned capital investment is ¥700 million. This investment will expand the types of hoses manufactured on continuous production lines to large diameter hoses while also utilizing the capacity of the existing production line for other products.
* Automated production lines that connect various production processes
Demand for construction machinery temporarily declined owing to the impact from the coronavirus pandemic, but it has since recovered sharply, especially outside of Japan, and is expected to continue increasing. Yokohama Rubber also in the midst of expanding the spiral wire hose capacity of Yokohama Industrial Products – Hangzhou Co., Ltd. (Hangzhou City, Zhejiang Province), the Group’s high-pressure hydraulic hose production base in China, where production capacity will be nearly tripled by this September. To meet expected further increases in demand in coming years, Yokohama Rubber now has decided to also invest in expansion at its Ibaraki Plant in Japan.
The Yokohama is also reorganizing its production of automotive hoses and couplings in the United States and Mexico, as part of its effort to strengthen its hose & couplings business. Looking ahead to future demand growth, the reorganization will consolidate and optimize products produced, increase operating rates at each plant, and create a more competitive production system.
The restructuring will transfer the production of air conditioning hoses and transmission oil cooling hoses supplied to automakers in North America and Mexico from Yokohama Industries Americas Inc. (YIA) and Yokohama Industries Americas South Carolina LLC (YIA South Carolina) in the United States to Yokohama Industries Americas de Mexico, S. de R.L. de C.V. (YIA Mexico). The transfers will be carried out gradually from this February, with completion scheduled for June 2023.
The restructuring will enable YIA to concentrate on production of its specialty hose assemblies that require advanced technological capabilities. Similarly, YIA South Carolina will focus on power steering hose assemblies, a product area where it commands a high market share. Meanwhile, YIA Mexico will be the base from which Yokohama Rubber expands its sales of air conditioning and transmission oil cooling hose assemblies.